Audit of financial statements necesaary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2015 If an individual is proprietor in two concerns, and one of them goes under Audit U/s 44AB ,and the 2nd concern does not qualify for audit, still is there any provision for the 2nd firm to be audited just on the basis of audit of 1st one ?

Rajagopalakrishnan R

Rajagopalakrishnan R (Expert)
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27 July 2015 In case of an individual, the turnover limit is to be ascertained for him as a whole and not business wise. So the starting point would be to add up turnover of all the concerns and if it exceeds one crore, then all concerns are subject to audit u/s 44AB. If any of the concerns are eligible businesses under section 44AD, audit can be avoided if 8% profit is declared. In such a case, the turnover of this concern will be excluded for calculating the one crore limit.